I have been a MF investor for more than five years. This new impending deadline for KYC has left me extremely confused. There is IPV, Extended KYC Norms etc. None of my details have changed. Is there any clarity on what all needs to be done here?
- Ram Natarajan
All mutual fund investors must provide additional information for supplementary KYC (Know Your Customer) and Foreign Account Tax Compliance Act (FATCA)/Common Reporting Standard (CRS) compliance to their mutual funds. If investors fail to update the information before 31 December, they will not be able to transact (except redemptions) in mutual funds after the New Year.
Investors can update their information either offline or online. Investors can pick up the form and fill it and submit it at investor service centres and point of services of mutual funds. They can also visit various websites like their mutual fund, Karvy, CAMS, etc and take a print out of the form and fill it and mail it to the mutual fund company.
If investors have investments in just one or two mutual funds, they have the option of visiting those mutual fund websites and update the information online. If investors have investments in several mutual funds, they can visit the websites of Registrar and Transfer Agents of mutual funds like CAMS and Karvy and update the information online. This is a relatively easy option as CAMS and Karvy together services almost every mutual fund in the country.
According to the website of CAMS, it services 15 mutual funds --Birla Sun Life, DSP BlackRock, HDFC, HSBC, ICICI Prudential, IDFC, IIFL, JP Morgan, Kotak, L&T, PPFAS, SBI, Shriram, Tata, Union KBC - that manage 60 per cent of the total assets managed by the industry. Karvy website lists the name of 23 mutual funds serviced by the company: Axis, Baroda Pioneer, Goldman Sachs, BOI Axa, Canara Robeco, Deutche, Edelweiss, IDBI, Franklin Templeton, JM Mutual Fund, LIC Nomura, Mirae Asset, Motilal Oswal, Peerless, Pramerica, Principal, Quantum, Religare, Reliance, Sahara, Taurus, UTI.
Take a look at the names on the lists. If you have investments only in mutual funds serviced by a single registrar, say, CAMS, you just need to update the information only with that particular registrar. In this example, with CAMS. However, if you have investments in mutual funds serviced by both CAMS and Karvy, you must update the information with both of them.
You can also visit the website of MF Utilities and take a look at the names of participating mutual funds. Around 25 mutual funds participate with MF Utilities. If your investments are only in these funds, you can join MF Utilities and update your information at one go. However, you should remember that MF Utilities is a platform to buy and sell mutual fund schemes across various participating AMCs. Investors should apply for a Common Account Number (CAN) to carry out transactions, including updating additional KYC and FATCA/CRS.